Porsche 2010 Annual Report Download - page 170

Financials
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[3] Other operating expenses
Other operating expenses consist of:
Expenses from stock price hedging derivatives were incurred primarily as a result of cash-
settled options, which in the past served to hedge the increase in the investment in Volkswagen AG.
This strategy is not to be pursued further and such stock options were no longer held as of the
reporting date.
Expenses from valuation of options on non-stock company shares contain the change in the
fair value of the call option of Volkswagen AG relating to the remaining shares in Porsche Zwischen-
holding GmbH.
[4] Profit/loss from investments accounted for at equity
The profit or loss from investments accounted for at equity breaks down as follows:
The profit or loss from investments accounted for at equity consists of the profit or loss
contribution from the investments in Porsche Zwischenholding GmbH and Volkswagen AG of €106
million and €969 million (prior year: €30 million and €6,762 million respectively).
The profit or loss from investments accounted for at equity contains the profit or loss from
the investments held by Porsche SE in Volkswagen AG and Porsche Zwischenholding GmbH from
the respective dates of deconsolidation. The Volkswagen group used to be included in the consoli-
dated financial statements of Porsche SE as of a reporting date that differs by one month from that
€ million SFY 2010 2009/10
Expenses from valuation of options on non-stock company shares 547 395
Expenses from stock price hedging derivatives 10 408
Expenses from stock options marked to market 0 1
Legal and consulting fees 17 109
Sundry operating expenses 16 43
590 956
€ million SFY 2010 2009/10
Income from initial equity accounting 0 7,841
Profit/loss from ongoing equity accounting (before purchase price allocation) 1,281 997
Effects from purchase price allocation – 206 – 606
Profit/loss from ongoing equity accounting 1,075 391
Dilutive effect from increase in capital 0 – 1,440
1,075 6,792